SIA reports first quarter loss in 5 years; sets up new unit to review business outlook

The Singapore Airlines Group (SIA) reported a S$138 million loss in the three months to March 31. This is its first loss in five years.

The company has set up a new Transformation Office to review its business. The aim is to "identify new revenue-generation opportunities," SIA said in a press statement on May 18, 2017.

Photo courtesy: singaporeair.com

There was an operating profit of S$623 million in the 2016-17 financial year. This is $58 million, or 8.5 percent, lower compared to the same period last year. Full-year net profit fell by 55.2 percent, attributable in part to the net loss recorded in the fourth quarter, the first in five years.

The dip in profit was attributed to intense competition amid persistent cost pressures, said SIA. This is in addition to other factors, such as geopolitical and economic uncertainty, which continues to exert pressure on yields.

The company has proposed a final dividend of 11 cents per share for the financial year of 2016-17. Including the interim dividend of 9 cents per share paid on 24 November 2016, the total dividend for the 2016-17 financial year will be 20 cents per share. The final dividend (tax exempt, one-tier) would be paid on 16 August 2017 to shareholders as at 3 August 2017.

Kareyst has experience in writing about B2B technology for Computerworld Singapore, MIS Asia and CIO Asia; and on government technology for GCIO Asia. Her pet areas are artificial intelligence, Internet of Things and smart cities - these are fueled by her obsession with sci-fi movies and philosophy of mind. An active Yoga practitioner and cat lover, with a background in Indian philosophy, subaltern and diaspora studies.